CIE Accounting Paper-1: Specimen Questions 1 - 2 of 214
Question number: 1
Which account is prepared in lieu of Cash Book?
Income and Expenditure A/c
Receipts and Payments A/c
Profit and Loss A/C
Receipt and Payment account are real in nature. It contains summary of actual receipts and payments of particular period. Thus it includes both the capital as well as revenue items. Receipt and Payments A/C are prepared in lieu of Cash book.
Question number: 2
In December 2010 Ibrahim wrote off Ali’s debt of $100. On 30 April 2012 Ali sent a cheque for $100. Which journal entry would Ibrahim make on 30 April 2012?
Bad debts are unrecovered money from the customer. Hence bad debts are deducted from the debtors at the end of the every year in order to know about the original amount due to the business.